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Mizrahi Tefahot Bank (IL:MZTF)
:MZTF
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Mizrahi Tefahot
(OTC:MZTF)
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Rating:80Outperform
Price Target:
26,232.00
â–²(24.09% Upside)
Mizrahi Tefahot's strong financial performance and positive earnings call are the most significant factors driving the stock score. The technical analysis supports a positive trend, while the valuation remains attractive. These strengths are slightly offset by potential overbought conditions indicated by technical indicators.
Mizrahi Tefahot (MZTF) vs. iShares MSCI Israel ETF (EIS)
Market Cap
59.29B
Dividend Yield3.88%
Average Volume (3M)419.70K
Price to Earnings (P/E)10.7
Beta (1Y)1.21
Revenue Growth11.00%
EPS Growth6.03%
CountryIL
Employees7,211
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)568.00
Shares Outstanding259,949,700
10 Day Avg. Volume472,692
30 Day Avg. Volume419,697
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)1.30
Price to Sales (P/S)1.42
P/FCF Ratio2.96
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)7,072.34
Revenue Forecast (FY)4.77T
Mizrahi Tefahot Business Overview & Revenue Model
Company DescriptionMizrahi Tefahot (MZTF) is a leading financial institution in Israel, primarily operating in the banking and financial services sector. The company offers a wide range of products and services including personal banking, corporate banking, investment services, and mortgage lending. With a strong emphasis on customer service and technological innovation, MZTF aims to meet the diverse financial needs of its clients, from individuals to large enterprises.
How the Company Makes MoneyMizrahi Tefahot generates revenue through various channels including interest income from loans, fees from banking services, and commissions from investment products. The bank earns a significant portion of its income from mortgage lending, which is a core focus area, providing home loans to consumers. Additionally, MZTF benefits from fee-based income through services such as account maintenance, financial advisory, and wealth management. The bank also engages in strategic partnerships with fintech companies to enhance its digital offerings, thereby attracting more clients and increasing transaction volumes, which contribute to its earnings.
Mizrahi Tefahot Earnings Call Summary
Earnings Call Date:Nov 18, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong credit growth, healthy mortgage demand, and robust financial performance, with net profits and cost efficiencies aligning with strategic goals. Despite challenges such as extra taxes and client relief impacts, the bank maintained strong capital reserves and a positive outlook.Q3-2025 Updates
Positive Updates
Strong Credit Growth
The bank reported very strong credit growth across most asset classes, including mortgages, corporate, and middle market, as part of its strategic plan.
Healthy Demand for Mortgages
Demand for mortgages remains healthy, and the bank continues to follow its strategy to retain market share despite heavy competition.
Robust Liquidity and Capital Ratios
The bank maintains robust liquidity with a high share of core deposits and capital ratios consistent with profitability and growth.
Strong Financial Performance
Net profit for Q3 2025 reached ILS 1.483 billion, and the return on equity was 17.6%. Total revenues for Q3 were ILS 3.830 billion.
Cost Efficiency
The bank achieved a cost-income ratio below 35%, in line with its strategic plan, as operating and other expenses totaled ILS 1.310 billion.
Negative Updates
Impact of Extra Tax and Client Relief
The bank's results were affected by the extra tax imposed on Israeli banks in 2025 and the extensive Bank of Israel client relief outline.
Company Guidance
During the Mizrahi Tefahot Bank Third Quarter 2025 Business Results Conference Call, the bank highlighted a strong performance characterized by significant credit growth across various asset classes, including mortgages and corporate sectors, which aligns with their strategic plan. The net profit for Q3 reached ILS 1.483 billion, contributing to a total net profit of ILS 4.26 billion for the first nine months of 2025. The return on equity for Q3 stood at 17.6%. The bank maintained a cost-income ratio of 34.2% for the quarter, and the financing revenues from current operations amounted to ILS 2.822 billion. The bank's equity was reported at ILS 34 billion. The provisioning ratio for loans was 0.04%, while the Tier 1 capital ratio was 10.14%, with a total capital ratio of 13.04%. The bank plans to distribute 50% of its Q3 profit as dividends, reflecting a balance between growth and capital requirements.Mizrahi Tefahot Financial Statement Overview
Summary
Mizrahi Tefahot exhibits solid overall financial health with strong revenue and profit growth, a robust balance sheet free from debt, and excellent cash flow generation. The company's financial structure is stable with low leverage, and it demonstrates effective profitability and cash management. These strengths position the bank well for sustained performance and potential future growth.Income Statement
Mizrahi Tefahot has demonstrated strong revenue growth with a 10.14% increase from 2023 to 2024. The net profit margin improved to 37.18% in 2024 from 36.85% in 2023, indicating effective cost management and profitability. The gross profit margin remains robust at 100%, as typical for banks. The EBIT margin also shows substantial strength at 64.76%, reflecting efficient operations.85
Very Positive
Balance Sheet
The company's balance sheet is strong, with a debt-free position in 2024, indicating excellent management of funds. Return on Equity (ROE) improved to 17.43% in 2024 from 17.88% in 2023, showcasing profitability relative to shareholder equity. The equity ratio increased to 6.44%, reflecting a stable financial structure. These metrics suggest financial stability and low leverage risk.80
Positive
Cash Flow
Operating cash flow increased significantly in 2024, indicating strong cash generation capacity. Free cash flow also saw a remarkable growth of 345.13% from 2023 to 2024, suggesting efficient capital expenditure management. The operating cash flow to net income ratio stands at 2.64, highlighting strong cash conversion from profits. The company shows robust cash management, despite large fluctuations in investing cash flows.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.13B | 28.65B | 26.77B | 19.20B | 13.12B | 9.56B |
| Gross Profit | 14.57B | 14.67B | 14.74B | 13.24B | 10.25B | 7.85B |
| EBITDA | 9.24B | 9.27B | 8.16B | 7.29B | 5.37B | 2.89B |
| Net Income | 5.47B | 5.46B | 4.91B | 4.47B | 3.19B | 1.61B |
Balance Sheet | ||||||
| Total Assets | 517.29B | 485.64B | 448.20B | 428.29B | 392.27B | 360.14B |
| Cash, Cash Equivalents and Short-Term Investments | 78.89B | 82.64B | 85.96B | 93.67B | 95.27B | 86.57B |
| Total Debt | 36.33B | 40.18B | 37.81B | 34.07B | 38.66B | 34.08B |
| Total Liabilities | 482.64B | 452.91B | 419.50B | 403.42B | 370.54B | 340.47B |
| Stockholders Equity | 33.11B | 31.29B | 27.46B | 23.78B | 20.77B | 18.80B |
Cash Flow | ||||||
| Free Cash Flow | 26.26B | 13.77B | 3.09B | 3.51B | 3.79B | 4.78B |
| Operating Cash Flow | 26.84B | 14.38B | 3.53B | 3.90B | 4.13B | 5.06B |
| Investing Cash Flow | -62.77B | -43.35B | -20.46B | -34.40B | -25.12B | -4.29B |
| Financing Cash Flow | 29.83B | 25.08B | 9.84B | 28.24B | 30.24B | 35.53B |
Mizrahi Tefahot Technical Analysis
Positive
21140.00
Price Trends
21511.80
Positive
21343.95
Positive
19394.85
Positive
Market Momentum
537.46
Negative
59.91
Neutral
70.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:MZTF, the sentiment is Positive. The current price of 21140 is below the 20-day moving average (MA) of 21954.00, below the 50-day MA of 21511.80, and above the 200-day MA of 19394.85, indicating a bullish trend. The MACD of 537.46 indicates Negative momentum. The RSI at 59.91 is Neutral, neither overbought nor oversold. The STOCH value of 70.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:MZTF.
Mizrahi Tefahot Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $100.10B | 10.37 | 15.67% | 2.96% | 6.95% | 12.41% | |
80 Outperform | 59.29B | 10.69 | 16.87% | 3.88% | 11.00% | 6.03% | |
80 Outperform | 90.45B | 10.84 | 13.95% | 3.12% | 26.68% | 11.45% | |
79 Outperform | $23.99B | 10.16 | 16.48% | 4.11% | 14.16% | 1.05% | |
79 Outperform | $40.60B | 9.45 | 13.10% | 3.35% | 14.48% | 4.65% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
IL:MZTF
Mizrahi Tefahot
23,190.00
7,951.14
52.18%
IL:LUMI
Leumi
6,980.00
3,003.13
75.51%
IL:FIBI
Fibi Bank
24,420.00
8,099.63
49.63%
IL:DSCT
Discount
3,432.00
1,133.97
49.34%
IL:POLI
Poalim
6,989.00
2,941.73
72.68%
IL:FIBIH
Fibi Holdings
26,580.00
9,746.00
57.89%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.